Charter Communications (NASDAQ:CHTR) and Cable One (NYSE:CABO) Head to Head Survey
by Danessa Lincoln · The Markets DailyCable One (NYSE:CABO – Get Free Report) and Charter Communications (NASDAQ:CHTR – Get Free Report) are both communication services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Cable One and Charter Communications, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cable One | 2 | 4 | 0 | 0 | 1.67 |
| Charter Communications | 7 | 10 | 5 | 0 | 1.91 |
Cable One presently has a consensus price target of $80.00, suggesting a potential upside of 1,373.30%. Charter Communications has a consensus price target of $202.53, suggesting a potential upside of 81.66%. Given Cable One’s higher possible upside, research analysts plainly believe Cable One is more favorable than Charter Communications.
Volatility and Risk
Cable One has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Charter Communications has a beta of 0.7, suggesting that its share price is 30% less volatile than the S&P 500.
Institutional and Insider Ownership
89.9% of Cable One shares are held by institutional investors. Comparatively, 81.8% of Charter Communications shares are held by institutional investors. 0.9% of Cable One shares are held by company insiders. Comparatively, 1.1% of Charter Communications shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Cable One and Charter Communications’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cable One | -72.83% | -3.97% | -0.86% |
| Charter Communications | 9.05% | 23.71% | 3.19% |
Valuation and Earnings
This table compares Cable One and Charter Communications”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cable One | $1.50 billion | 0.02 | -$356.46 million | ($185.06) | -0.03 |
| Charter Communications | $54.77 billion | 0.24 | $4.99 billion | $38.51 | 2.90 |
Charter Communications has higher revenue and earnings than Cable One. Cable One is trading at a lower price-to-earnings ratio than Charter Communications, indicating that it is currently the more affordable of the two stocks.
Summary
Charter Communications beats Cable One on 12 of the 14 factors compared between the two stocks.
About Cable One
Cable One, Inc., together with its subsidiaries, provides data, video, and voice services in the United States. The company offers residential data services, a service to enhance Wi-Fi signal throughout the home. It also provides various residential video services from basic video service to digital services with access to hundreds of channels; and provides a cloud-based DVR feature that does not require the use of a set-top boxes. In addition, the company offers Sparklight TV, an IPTV video service that allows customers to stream its video channels from the cloud through an app on supported devices, such as the Amazon Firestick, Apple TV, and Android-based smart televisions. Further, it provides data, voice, and video products to business customers, including small to mid-markets, enterprises, and wholesale and carrier customers. The company serves residential and business customers, comprising data, video, and voice services. Cable One, Inc. was incorporated in 1980 and is headquartered in Phoenix, Arizona.
About Charter Communications
Charter Communications, Inc. operates as a broadband connectivity and cable operator company serving residential and commercial customers in the United States. The company offers subscription-based internet, video, and mobile and voice services; a suite of broadband connectivity services, including fixed internet, WiFi, and mobile; Advanced WiFi services; Spectrum Security Shield; in-home WiFi, which provides customers with high performance wireless routers and managed WiFi services to enhance their fixed wireless internet experience; out-of-home WiFi; and Spectrum WiFi services. It also offers voice communications services using voice over internet protocol technology; and broadband communications solutions, such as internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. In addition, the company provides mobile services; video programming, static IP and business WiFi, voice, and e-mail and security services; sells local advertising across various platforms for networks, such as TBS, CNN, and ESPN; sells advertising inventory to local sports and news channels; and offers Audience App to create data-driven linear TV campaigns for local advertisers. Further, the company offers communications products and managed service solutions; data connectivity services to mobile and wireline carriers on a wholesale basis; and owns and operates regional sports networks and news channels. It serves approximately 32 million customers in 41 states. Charter Communications, Inc.was founded in 1993 and is headquartered in Stamford, Connecticut.